At the time, the main cryptocurrency, bitcoin (BTC), went from $19,500 to $6,700 per coin in the space of seven weeks. This was a 64% drop.
But this time it’s very different. Digital currencies are on the way to endowed a sound regulatory framework and to be widely adopted. It would therefore be wise to buy the best cryptocurrencies during sharp declines, such as the one we are currently observing.
Read on to find out why Bitcoin, Ethereum (ETH), and Polkadot (DOT) are the top names on this list of long-term winners. These are the ones you should pick up on temporary lows and then hold with diamond hands.
Strike First, Strike Hard
I’m not trying to surprise you. The idea is to select the most stable cryptocurrencies in a long term perspective. These three tokens hold the first-mover advantage in their respective domain, which is no small feat, especially for bitcoin.
Yes, there are many cryptocurrencies that share Bitcoin’s vision of providing a means of digital payment and storage of value to rival the dollar and euro. But the best way to do this is to create a single digital currency – not dozens of options with slightly different design parameters – that is taken seriously by consumers, retailers, banks and other data manipulators. ‘silver.
Despite all its technical flaws, bitcoin has always been an alternative to cash. It is the first token that retailers turn to when considering the future of cryptocurrency payments. It is the one that companies like Block and Tesla write on their balance sheets, replacing part of their cash reserves. And even though emerging companies have been gaining market share over the past five years, bitcoin still accounts for 41% of the market capitalization of the cryptocurrency industry as a whole:
Bitcoin is the cryptocurrency most obvious to buy now and keep forever. But wait – there’s more!
Smart contracts and flexible technology
One of the two main uses of cryptocurrencies is the transfer of money and the storage of values. The other is smart contracts, which use digital tokens to set up and manage an amazing variety of cutting-edge products and services.
Read also Why Are Crypto Markets Falling So Severely?
Without smart contracts, there are no non-fungible tokens or decentralized financial services. They can add another layer of security to a cryptocurrency transaction or include additional data to the current transaction. These contracts may eventually form the basis of next-generation voting systems, manage our health records, or automatically settle our claims.
It’s a powerful idea that can save you money in the long run. Here, the value of smart contract tokens comes from their advanced functions and usefulness in the real world.
You know the early bird that caught this worm like Ethereum. Projects using this blockchain and its tokens make up the overwhelming majority of all smart contract applications and services today. According to State of the dApps, a site that tracks the market for decentralized applications (dApps), Ethereum-based dApps represent 1,977 of 2,775 smart contract applications.
A programming platform that holds 71% of the total market is not easily replaceable, although some of Ethereum’s rivals offer faster execution and other benefits.
And the Ethereum project is not exactly standing still. Developers are constantly tweaking the blockchain network code behind the scenes, in preparation for the highly anticipated release of Ethereum 2.0 in early 2022. less energy-consuming proof-of-stake and make the whole system more secure. This willingness to recognize and correct technical faults on the fly ensures Ethereum has a long and healthy future in an ever-changing market.
Make bigger profits from smaller cryptocurrencies
And let’s not forget the not-so-secret card up my sleeve. Polkadot is the eleventh largest cryptocurrency by market capitalization, valued at 5.6% of Ethereum’s total value or 2.8% of Bitcoin’s. Polkadot’s vision is to connect various blockchain networks to form an interconnected system that is much more powerful than the sum of its parts.
Similarly, apps built on Polkadot can survey the entire cryptocurrency market to find the best performing networks at a specific task, then combine several to get an even more potent end product. Polkadot makes it easy with the added help of crowdfunding processes and a thriving developer community.